Limited control over market responses: the government has limited control over the consequences of its actions
Limited control over bureaucracy: parliament, government and local government design some government agency. The agency may also be responsible for ensuring the regulations are enforced.
Limitations imposed by the political process: choosing among many alternatives through the political process would raise conditional probabilities. This is because the government affects many people but are decided upon by a limited group. The decision makers have to ascertain the preferences of their constituencies and they have to find some way of reconciling among conflicting preferences. Government may therefore act in an inconsistent manner.
Faimus answered the question on February 25, 2019 at 19:25
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What are the causes of government failure?
(Solved)
What are the causes of government failure?
Date posted:
February 25, 2019
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Answers (1)
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Briefly describe what is meant by non-market failure
(Solved)
Briefly describe was is meant by non-market failure
Date posted:
February 25, 2019
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What are the functions of the government (public policy objective)
(Solved)
What are the functions of the government (public policy objective)
Date posted:
February 25, 2019
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How does the government redistribute income?
(Solved)
How does the government redistribute income?
Date posted:
February 25, 2019
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What is the role of the government in the market?
(Solved)
What is the role of the government in the market
Date posted:
February 25, 2019
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Answers (1)
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Briefly explain income distribution as a source of market failure
(Solved)
Briefly explain income distribution as a source of market failure
Date posted:
February 25, 2019
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Answers (1)
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What are the effects and the contribution of the excess tax burden to market failure?
(Solved)
What are the effects and the contribution of the excess tax burden to market failure?
Date posted:
February 25, 2019
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Answers (1)
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Taxation leads to the excess tax burden. Briefly explain what the excess tax burden refers to.
(Solved)
Taxation leads to the excess tax burden. Briefly explain what the excess tax burden refers to.
Date posted:
February 25, 2019
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Answers (1)
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How does tax system cause market failure?
(Solved)
How does tax system cause market failure?
Date posted:
February 25, 2019
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Answers (1)
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What is meant by asymmetric information?
(Solved)
What is meant by asymmetric information?
Date posted:
February 25, 2019
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In what cases do the positive and negative externalities occur?
(Solved)
In what cases do the positive and negative externalities occur?
Date posted:
February 25, 2019
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What are the disadvantages of the paternalistic role of the government
(Solved)
What are the disadvantages of the paternalistic role of the government
Date posted:
February 25, 2019
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Answers (1)
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Define the paternalistic role of the government and briefly define some of its advantages
(Solved)
Define the paternalistic role of the government and briefly define some of its advantages
Date posted:
February 25, 2019
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Answers (1)
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Define any three sources of market failure
(Solved)
Define any three sources of market failure
Date posted:
February 25, 2019
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Answers (1)
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Consider the following data Date Exchange rate January 2017 EURUSD 1.100 December 2017 EURUSD 1.144 Take USD as the home currency.
(Solved)
a) Consider the following data
Date-----Exchange rate
January 2017----EURUSD 1.100
December 2017----EURUSD 1.144
Take USD as the home currency.
According to purchasing power parity which currency area should have had the higher rate of inflation by 2017 and by how much?
b) If inflation in the USD were 3% higher than the EURO area, calculate the change in the real value of the dollar .what is the implication of this change?
C) What is the implication of a change in real exchange rate of a currency?
d)
Explain why you would expect interest rates in the US to be higher than in the EURO area.
e) Explain why you would expect there to be no difference in the interest rates of a government bond of any two countries in the euro area and also explain why in practice there are differences.
Date posted:
February 16, 2019
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Answers (1)
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a) Calculate to 4 decimal place the new exchange rate after a 2% increase in the value of the dollar given an exchange rate of...
(Solved)
a) Calculate to 4 decimal place the new exchange rate after a 2% increase in the value of the dollar given an exchange rate of EURUSD 1.1 .
b) Given the following exchange rate, calculate the GBPEUR rate to 4 decimal places.
EURUSD 1.1043
GBPUSD 1.2970
c) Explain the relationship between your answer above and triangular arbitrage.
Date posted:
February 16, 2019
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Answers (1)
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Discuss five different types of elasticity of supply.
(Solved)
Different types of elasticity with examples.
Date posted:
February 14, 2019
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Give any three factors that limit the level of liquidity preference
(Solved)
Give any three factors that limit the level of liquidity preference
Date posted:
January 24, 2019
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Answers (1)
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State and explain the branches of economics
(Solved)
State and explain the branches of economics.
Date posted:
January 21, 2019
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Explain the ways in which the income elasticity of demand coefficient is interpreted
(Solved)
Explain the ways in which the income elasticity of demand coefficient is interpreted
Date posted:
January 16, 2019
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Answers (1)